Pitfalls and potential of institutional change: Rain-index insurance and the sustainability of rangeland management

B-Tier
Journal: Ecological Economics
Year: 2011
Volume: 70
Issue: 11
Pages: 2137-2144

Authors (4)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Rain-index insurance is strongly advocated in many parts of the developing world to help farmers to cope with climatic risk that prevails in (semi-)arid rangelands due to low and highly uncertain rainfall. We present a modeling analysis of how the availability of rain-index insurance affects the sustainability of rangeland management. We show that a rain-index insurance with frequent payoffs, i.e. a high strike level, leads to the choice of less sustainable grazing management than without insurance available. However, rain-index insurance with a low to medium strike level enhances the farmer's well-being while not impairing the sustainability of rangeland management.

Technical Details

RePEc Handle
repec:eee:ecolec:v:70:y:2011:i:11:p:2137-2144
Journal Field
Environment
Author Count
4
Added to Database
2026-01-24